Celadon Group Reports June Quarter and Full Fiscal Year Results and
Declares Dividend

July 29, 2013 04:01 PM Eastern Daylight Time

INDIANAPOLIS--(BUSINESS WIRE)--Celadon Group Inc. (NYSE: CGI) today reported its financial and
operating results for the three months ended June 30, 2013, the fourth
fiscal quarter of the Company’s fiscal year ending June 30, 2013.

Revenue for the quarter increased 3.2% to $162.6 million in the 2013
quarter from $157.5 million in the 2012 quarter. Freight revenue, which
excludes fuel surcharges, increased 5.7% to $131.4 million in the 2013
quarter from $124.3 million in the 2012 quarter. Net income decreased
20.0% to $7.2 million in the 2013 quarter from $9.0 million for the same
quarter last year. Earnings per diluted share decreased 20.5% to $0.31
in the 2013 quarter from $0.39 for the same quarter last year.

For the fiscal year ended June 30, 2013, revenue increased 2.4% to
$613.6 million in 2013 from $599.0 million for the same period last
year. Freight revenue, which excludes fuel surcharges, increased 2.9% to
$489.0 million in 2013 from $475.1 million for the same period last
year. Net income increased 7.1% to $27.3 million in 2013 from $25.5
million for the same period last year. Earnings per diluted share
increased 4.5% to $1.17 in 2013 from $1.12 for the same period last year.

Paul Will, President and Chief Executive Officer, made the following
comments: “We are pleased with our overall improvement in our operating
statistics. The increase in average seated tractor count of 146, or
5.6%, to 2,770 in the June 2013 quarter compared with 2,624 in the March
2013 quarter was a significant operating metric improvement that
resulted in increased revenue for the quarter. This increase was a
result of expanding our recruiting efforts at terminal locations, having
established a driving school and training program at our Indianapolis
headquarters as well as the previously announced Hyndman acquisition
which was completed in May 2013. Our average revenue per tractor per
week increased $43, or 1.5%, to $2,941 in the June 2013 quarter, from
$2,898 in the March 2013 quarter. In addition, our average revenue per
loaded mile increased to $1.59 per mile in the June 2013 quarter from
$1.55 in the June 2012 quarter.

“The average age of the Company’s tractor fleet was 1.4 years as of June
2013, compared to 1.5 years as of June 2012 and the average age of the
trailer fleet was 2.2 years as of June 2013 compared with 2.8 years as
of June 2012. Gains on sales of assets were $0.6 million in the June
2013 quarter compared with $3.2 million in the June 2012 quarter. The
Company has completed its current tractor and trailer refresh cycle.

“We believe we have put in place a lean cost structure, upgraded and
expanded the fleet to one of the newest in the industry, broadened
service offerings to customers, and positioned the Company to allow it
to expand margins and profitability.

“Our balance sheet remains solid and we retain significant liquidity to
support the growth of our business. At June 30, 2013, we had
$225.7 million of stockholders' equity and our earnings before interest,
taxes, depreciation and amortization was $27.7 million in the current
June 2013 quarter. Our increased cash flow generated from operations
will allow us to effectively continue to execute on our growth strategy.”

On July 28, 2013, the Board of Directors approved a regular cash
dividend to shareholders for the quarter ending June 30, 2013. The
quarterly cash dividend of two cents ($0.02) per share of common stock
will be payable on October 18, 2013 to shareholders of record at the
close of business on October 4, 2013.

Conference Call Information

An investor conference call is scheduled for Tuesday, July, 30, at 11:00
a.m. ET. Management will discuss the results of the quarter. To listen
and participate in a questions-and-answers exchange, simply dial855-410-0553
(or 646-583-7389) pin number 720996 a few minutes prior to the start
time. A replay will be available through August 30 at http://investors.celadontrucking.com.

Celadon Group Inc. (www.celadongroup.com),
through its subsidiaries, primarily provides long-haul, full-truckload
freight service across the United States, Canada and Mexico. The company
also owns Celadon Logistics Services, which provides freight brokerage;
Celadon Dedicated Services, which provides supply chain management
solutions, such as warehousing and dedicated fleet services.

This press release contains certain statements that may be considered
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended and Section 21E of the Securities
Exchange Act of 1934, as amended. Such statements may be identified by
their use of terms or phrases such as "expects," "estimates,"
"projects," "believes," "anticipates," "plans," "intends," and similar
terms and phrases. Forward-looking statements are based upon the current
beliefs and expectations of our management and are inherently subject to
risks and uncertainties, some of which cannot be predicted or
quantified, which could cause future events and actual results to differ
materially from those set forth in, contemplated by, or underlying the
forward-looking statements.Actual results may differ from those
set forth in the forward-looking statements.The following
factors, among others, could cause actual results to differ materially
from those in forward-looking statements: the risk that our perception
of additional capacity due to seating trucks and perceived benefits
thereof are inaccurate; the risk that our perception of changes in our
customer base and perceived benefits thereto are inaccurate; the risk
that managing our tractor fleet age does not result in greater
flexibility and lower operating expenses; excess tractor and trailer
capacity in the trucking industry; decreased demand for our services or
loss of one or more of our major customers; surplus inventories;
recessionary economic cycles and downturns in customers' business
cycles; strikes, work slow downs, or work stoppages at our facilities,
or at customer, port, border crossing, or other shipping related
facilities; increases in compensation for and difficulty in attracting
and retaining qualified drivers and independent contractors; increases
in insurance premiums and deductible amounts; elevated experience in the
frequency or severity of claims relating to accident, cargo, workers'
compensation, health, and other matters; fluctuations in claims expenses
that result from high self-insured retention amounts and differences
between estimates used in establishing and adjusting claims reserves and
actual results over time; increases or rapid fluctuations in fuel
prices, as well as fluctuations in hedging activities and surcharge
collection, the volume and terms of diesel purchase commitment, interest
rates, fuel taxes, tolls, and license and registration fees;
fluctuations in foreign currency exchange rates; increases in the prices
paid for new revenue equipment and changes in the resale value of our
used equipment; increases in interest rates or decreased availability of
capital or other sources of financing for revenue equipment; seasonal
factors such as harsh weather conditions that increase operating costs;
competition from trucking, rail, and intermodal competitors; regulatory
requirements that increase costs or decrease efficiency, including
revised hours-of-service requirements for drivers and new emissions
control regulations; our ability to identify acceptable acquisition
candidates, consummate acquisitions, and integrate acquired operations;
the timing of, and any rules relating to, the opening of the border to
Mexican drivers; challenges associated with doing business
internationally; our ability to retain key employees; and the effects of
actual or threatened military action or terrorist attacks or responses,
including security measures that may impede shipping efficiency,
especially at border crossings.

Readers should review and consider these factors along with the
various disclosures by the company in its press releases, stockholder
reports, and filings with the Securities Exchange Commission.We
disclaim any obligation to update or revise any forward-looking
statements to reflect actual results or changes in the factors affecting
the forward-looking information.